Domo launches new BRC20 governance structure, what impact will it have on the inscription market?

On the third day after the first anniversary of BRC 20 and ORDI, domo announced the new BRC 20 governance structure.

The Layer 1 Foundation (L1F), founded by BRC 20 founder Domo and friends, is excited to announce organizational changes to the BRC 20 governance structure, including the appointment of several leading BRC 20 indexers as partners, includingHiro、ALEX、Oyl 、Allium 、UTXO Management. at the same time,UnisatandBestinSlotWill serve as the future co-main maintainer of the BRC 20 protocol.

In addition to support for BRC 20, L1 F is committed to providing public tools, educational resources, and open forums to developers building various meta-protocols on Bitcoin. They envision a decentralized economy on Bitcoin and support this vision through non-profit open source development and education.

Looking back at the past governance turmoil of BRC 20

Interestingly, although Unisat is famous for working with Domo to develop the first BRC-20 indexer, it had a disagreement with Domo over whether to make BRC-20 follow the Ordinals upgrade.

On January 2, 2023, Domo, the founder of BRC 20, retweeted UniSats statement that it would comply with the Jubilee upgrade, saying: Given the serious consequences and valuation involved, I think the rush to launch these updates to BRC 20 is It is reckless, ignores peer indexers, and may harm the overall interests of the BRC 20 user community.

Domo believes that integrating new updates into the BRC 20 standard is a complex matter, and without a strong testing, coordination and verification infrastructure being built, these changes may be unsafe. He even bluntly stated that the actions taken by UniSat are not just a one-time technical push, but part of UniSats thoughtful and ongoing strategy to master the BRC 20 agreement.

However, after 3 days of discussions, on January 5, BRC 20 founder Domo stated on social media that he had reached a consensus with UniSat and other parties. The agreed path forward includes: 1. Adopt ord version 0.14 (that is, agree with BRC-20 to follow Ordinals upgrade); 2. Temporarily ignore the latest Vindications proposed by Casey, which can be enabled in the future; 3. Solve the extreme cases raised in the Vindication PR; 4. Ignore the agent/encoding issue.

It is reported that a charm named vindicated has been added to Vindications PR to prove that only small changes to ord can support BRC-20 indexers that want to update to a new version of ord later. The method is Allows them to temporarily ignore inscriptions with the vindicated charm until updated to a new version.

BRC 20 governance upgrade is inevitable

Clearly, the last disagreement had a profound impact on BRC 20s governance structure.

The new governance rules formulated by Layer 1 Foundation (L1 F) may be precisely to deal with similar governance disturbances to ensure that the future development of BRC 20 proceeds smoothly under a more transparent and stable governance framework. Layer 1 Foundation (L1 F) stated that over the past few months, designing a transparent governance structure for BRC 20 and ensuring that users are protected first will be critical to the future growth and reliability of the protocol, especially considering the index-based protocol. The task of designing a governance structure (not connected to the blockchain consensus mechanism) is extremely complex, with many challenges and pitfalls.

For an index-based protocol like BRC 20, designing a governance structure that is both fair and flexible is a difficult task. Therefore, in order to ensure the future development and reliability of the protocol, it is crucial for Domo to formulate governance rules, and the BRC 20 governance upgrade is inevitable.

By appointing leading BRC 20 indexers such as Unisat and Best In Slot as partners, L1F can bring together additional expertise and resources to drive the development and maintenance of the protocol. This will help increase transparency in governance, reduce the risk of centralization, and ensure the long-term health of the protocol. In addition, this may also be to increase Domos voice in BRC 20 governance. By formulating specifications and appointing main maintainers, Domo and L1 F may play a more direct influence in the future direction and decision-making of the protocol, affecting the stability and long-term development of the BRC 20 community.